The move of raising U.S. debt ceiling for 4 months is coming closer and probably will get completed on Wednesday. President Obama is likely set to sign the bill prepared by Congress for easing the uncertainty that is shaking the U.S. economy from some days.
Debt ceiling suspension that will allow the government to borrow money till May 19th will come to a vote from Republican House of representatives. According to Pete Sessions, House Rules Committee Chairman, the bill will reserve full votes from both parties (Republicans and Democrats) and is most likely to be passed. On the other hand, White House representative Jay Carney also said that President Obama will not stand in the path of the bill by becoming a law and will sign the bill for better condition of U.S. economy.
Not so long ago, in fact yesterday, some Democrats said that they prefer a long term and permanent move on the side of debt ceiling because debt ceiling is an important matter for the country and temporary actions with it can leave the economy languishing in the tougher days. However, today Senate Democratic members have praised the bill and have said that the bill is a serious move from Republicans for avoiding the U.S. debt default that is threatening the economy from some months.
For those who don’t know, I want to tell that the bill includes an automated activation of deep spending cuts program from March 1 and an automated expiry of funding for government programs and agencies from March 27. The bill also seeks some sort of action in the form of a budget from the side of Senate for spending cuts by April 15th, and if Senate or Government fail in presenting a budget by April 15th then liable legislator(s) will suffer from pay cuts until they present a bill. Even if no bill is presented, they will get paid, but in the January of 2014.
Republicans have already said long time ago that this bill will only buy some time for Democratic Government and will help in making a plan that helps in pushing the crisis behind. Nothing else should be hoped until government cuts it’s own spendings.
For now everyone is happy that country will not face a debt default at least for four months. Otherwise the whole American market was threatened badly from the impact of a debt default from few months. Significant impact of that fear was seen on global share markets too.